How much of Garmin Ltd’s revenue comes from haram?

Garmin Ltd. earns its revenue from the following segments:

  • Fitness

Includes the sale of their GPS wearables including smartwatches and GPS running and cycling products.

  • Outdoor

Includes the sale of GPS-capable devices designed for outdoor uses, such as their “Adventure watches” line with many outdoor-inspired features and detailed map data. 

  • Marine

Includes numerous devices used for marine navigation, underwater discovery, and fishing.

  • Aviation

Includes the sale of GPS products in general aviation, business aviation, rotorcraft, and experimental/light-sport markets. These include instruments used for navigation, autopilot, and communication systems.

  • Auto

Includes OEM (Original equipment manufacturer) solutions by working directly with auto manufacturers. Alongside OEMs, they also sell consumer auto products such as Personal Navigation Devices and Dash Cameras.

Practical Islamic Finance concludes:

None of Garmin Ltd’s revenue comes from anything inherently haram.

Does Garmin Ltd. rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
1/31/2020
Fiscal year
ended
1/31/2019
Interest Income$14,670$37,002$52,817
Total Revenue$2,399,232$4,186,573 $3,757,505
Interest Expense$ –$ –$ –
Total Expenses$1,778,401 $3,132,333 $2,811,919
Interest Income / Revenue0.61%0.89%1.40%
Interest Expense / Total Expense
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes: 

Riba is used but not relied upon in Garmin’s operations.

What is Garmin Ltd’s Environmental, Social, and Governance (ESG) impact?

Environment

No notable environmental highlights.

Social

Garmin Ltd. has a Glassdoor rating of 4.1 out of 5.0 from over 1,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes: 

Garmin has a net positive ESG impact. 

Comfort Rating

From Garmin Ltd’s business, financial, and ESG reviews, Practical Islamic Finance rates Garmin Ltd stock as: 

Comfortable to invest in from a Halal perspective.

Sources

Garmin Ltd 2020 10-K

Garmin Ltd Q2 2021 10-Q

Garmin Reviews

Garmin Ransomware Attack